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Politics : The Trump Presidency
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To: Lane3 who wrote (221682)1/4/2022 1:11:48 PM
From: i-node  Read Replies (2) of 360040
 
I don't "hate" MMT.

I think it is utterly stupid and lacks any understanding of what money actually is.

Money is a stand-in for value. The fundamental basis of value is scarcity. Without scarcity, there is no value.
The value need not be intrinsic which is why bitcoin, and old rai stones on the island of Yap can be used as money.

Bitcoin is an excellent model for money.

Bitcoin's value is created by limited production of an object that is perceived to have value based solely on its scarcity and continuity of existence. In the case of the US $, value is perceived because dollars' scarcity is reasonably determinate. MMT suggests an unlimited supply of dollars will not decimate the dollar's value. This is clearly wrong.

You cannot retain scarcity (or value) if you are printing, or "mining" it on an unlimited basis.

This is the reason that Satoshi Nakamoto designed into bitcoin two important principles:
- Scarcity is always guaranteed by the difficulty and expense of "mining", and
- The fact that the extant quantity of bitcoin is sharply limited to a predetermined number of bitcoin that can be mined, ever.

These provide the essential characteristic for a currency -- scarcity/value throughout its existence. Without which it is not a lasting currency.

MMT makes no sense and sets up a scenario not unlike what happened in Venezuela a few years ago, and has happened hundreds if not thousands of times throughout history. It isn't going to change to accommodate the USA's unlimited desire for bureaucrats in Washington DC.
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